Buying Behavior


The effectiveness of the different options would depend on the buying behavior. Telemarketing is an example that highlights the importance of understanding the buying behavior before allotting the functions. Several telemarketing agencies promote their products through television. However, the sales of those brands are not picking up as this method is unable to allow the consumers to feel the  product or have a demonstration. Noticing this deficiency the telemarketing agencies open franchise outlets in major towns to satisfy this consumer requirements.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Selection of Dealers


  • The company does not advertise for new dealers. Whenever the need to appoint a new dealer for an area is felt the word is spread around. This is being used as the type of dealer who sell pumps and motors are mostly concentrated in a locality in every town or city
  • The interested dealers are asked to present before the branch manager and the group marketing manager as to how they would be able to serve the company
  • The selection is then done on the basis of following criteria:
  1. Financial Strength: The capability of the dealer to be able to hold sufficient stock as per the potential of the area, both in the present and in the future, and whether he will be able to pay the companies dues in time.
  2. Manpower: the strength of the workforce for handling sales, delivery, store handling, after sales service etc. the quality of the workforce in terms of educational qualifications, technical competency, and experience is also seen.
  3. Contacts: As the business for these types of products is done on  the basis of contacts that form a major basis for selection and include the present customers of the dealers, experience in dealing with such customers, and overall contacts in the society
  4. Floor space: Depending on the quantity of products to be stocked for the targeted sales, the floor space of the godown should be sufficient and located close to the market
  5. Location: Location and ambiance of the outlet are not important.
  • Feedback from the market is obtained through the market network and the present dealer network. The feedback is sought for things like authenticity of the claims and the reputation of the person to be appointed.
  • Appointment is given to the elected dealers after they give a security deposit. Every dealer is required to make a deposit with the company, which works out to roughly around three months of expected sales.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Personal Selling: Two Approaches


Personal Selling: Two Approaches

Many American companies do not put nearly enough effort into direct, personal communication. Japanese success in displacing the US as Saudi Arabia’s leading supplier is instructive. Japanese exporters and small teams to meet with Saudi importers: Japanese exporters; they go to Saudi workshops, travel to secondary towns, and meet with sub-agents. The Americans, on the other hand, invite all their Saudi agents together for a luncheon, do not have private meetings, do not get their hands dirty, and never travel to secondary towns—they tend to stick to the three market centers. Saudis complain that US effort is misdirected: American personnel devote infinitesimal detail to making advance arrangements for visiting executives, going so far as to specify rooms overlooking a certain view from the hotel.

Japanese firms supplement their direct, personal efforts with heavy local advertising. They use gifts generously in product introductions, and warrantees on Japanese consumer electronics range up to three years. To carry out this business, Japanese trading companies have large staffs of professional international marketers who have been cultivated since graduation from a Japanese international trading university, schooled in English and Arabic, and rotated worldwide as international trading specialists.

Compared to most other cultures, particularly non-Western. Americans are extraordinarily preoccupied with the tangible aspects of a product. They round up all their sales agents and give a product presentation instead of putting their energies into the more important component of international marketing—people. In American and only a few other countries it is normal to do business from a distance, between strangers, by mail or telephone.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Just About Money


Strictly defined, money is anything generally accepted in exchange for goods and services. To be used as a medium of exchange, money must be acceptable, divisible, portable, stable in value, durable, and difficult to counterfeit.

Acceptability: To be effective, money must be readily acceptable for the purchase of goods and services and for the settlement of debts. Acceptability is probably the most important characteristic of money: If people do not trust the value of money, businesses will not accept it as a payment for goods and services, and consumers will have to find some other means of paying for their purchases.

Divisibility: Given the widespread use of quarters, dimes, nickels, and pennies in the United States, it is no surprise that the principle of divisibility is an important one. With barter, the lack of divisibility often makes otherwise preferable trades impossible, as would be an attempt to trade a steer for a loaf of bread. For money to serve effectively as a measure of value, all items must be valued in terms of comparable units—dimes, for a piece of bubble gum, quarters for laundry machines, and dollars (or dollars and coins) for everything else.

Portability: Clearly, for money to function as a medium of exchange, it must be easily moved from one location to the next. Large colored rocks could be used as money, but you couldn’t carry them around in your wallet. Paper currency and metal coins, on the other hand, are capable of transferring vast purchasing power into small, easily carried bundles.

Stability: Money must be stable and maintain its declared face value. The principle of stability allows people who wish to postpone purchases and save their money to do so without fear that it will decline in value. Money declines its value during periods of inflation, when economic conditions cause prices to rise. Thus, the same amount of money buys fewer and fewer goods and services.

Durability: Money must be durable. The crisp new dollar bills you trade at the music store for the hottest new CD will make their way all around town for about 18 months before being replaced. Were the value of an old, faded bill to fall to line with the deterioration of its appearance, the principles of stability and universal acceptability would fail. Although metal coins, due to their much longer useful life, would appear to be an ideal form of money, paper currency is far more portable than metal because of its light weight. Today, coins are used primarily to provide divisibility.

Difficulty to Counterfeit: To remain stable and enjoy universal acceptance, it almost goes without saying that money must be very difficult to counterfeit—that is, to duplicate illegally. Every country takes steps to make counterfeiting difficult. Most use multicolored money, and many use specially watermarked papers that are virtually impossible to duplicate.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

An Advice to Change Leaders: Persuade Indirectly


In large organizations, it is not feasible to persuade people through one-on-one communication. Particularly, if the organization is multi-locational, persuasion has to be through indirect means such as memos, speeches and newsletters. Change leaders also need to build capabilities in persuading others indirectly. The following guidelines can help managers be effective in indirect persuasion:

  1. Neutralize the power of informal networks: Change leaders need to develop reliable communication channels to communicate their change agenda directly to employees in the organization. Otherwise people will rely on informal grapevine that can distort the change message either unintentionally or deliberately. In either case, employees may develop unfavorable perceptions of the change agenda leading to opposition and resistance. Communication channels such as employee forums, town meetings and special newsletters can counter the grapevine and informal networks. Change leaders must be particularly careful in not withholding bad news because such news gets out very quickly into the grapevine.
  2. Repeat the message: Focus and repetition are critical for effective communication. This means that the change agenda should consist of only a limited number (two or three, at best) of themes. These themes need to be repeated and reinforced through different communication channels.
  3. Match the medium to the message: Speeches and video-conferences are ideal to communicate vision and values; these media are also appropriate to inspire people to embrace change. On the other hand, data, graphs and charts are best conveyed in the written form—such as memos, newsletters and web pages. Change leaders must think very carefully about appropriate media before communicating their change agenda.
  4. Simplify the message: The change agenda needs to be conveyed through a framework that is conceptually simple and easy to grasp. Yet, change leaders must avoid the trap of oversimplification. Oversimplified messages sound trite and faddish and can significantly reduce the credibility of the communicator. Simple frameworks are easy to remember, and are also powerful in framing the change agenda to mobilize support.
  5. Create a new story about change: Stories constitute a powerful medium to mobilize support. People are more likely to remember stories rather than facts and figures. Stories are also more effective in persuading people to alter their perceptions of change. Therefore change leaders need to be able to craft their change agenda in the form of story.
  6. Build personal credibility: Change leaders who are respected, considered trustworthy and competent are more likely to be effective in persuading their employees to embrace change. Personal credibility is built on the foundation of consistency. Change leaders must demonstrate consistency between their thoughts, words and behavior. Inconsistent, self-serving behavior can severely erode the credibility of a leader.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Monopsony in the Factor Market


Just as a monopolist is a sole seller in a market, a monopsonist is a sole buyer. If everyone in a small town works for a single coal mine, then the mine has monopsony power in the local labor market. A price-taking employer of a factor faces a horizontal supply curve, meaning that hire-price will be unaffected. But the monopsonist is the whole demand side of its market, so the factor supply curve it faces is upward slopping.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight